Rent regulatory agency for FCT

The Federal Capital Territory Administration (FCTA) has concluded plans to introduce a rents regulatory agency (RERA) to control what many have termed the prohibitive rents in the Territory.

It was gathered that the FCT Minister, Senator Bala Mohammed has concluded plans to establish the agency, which will be backed with necessary laws that will require property owners to collect rents on monthly or quarterly basis instead of the current annual or bi-annual arrangement.

Recall that Mohammed had hinted on this move while responding to questions from FCT residents recently.

“Together with property tax, Senator Smart Adeyemi said the FCTA intends to sanitise the system in the real estate sector, kill the black market in that sector, make housing affordable and rents sustainable and more importantly; it will boost the economy,” a source said.

One of the stakeholders in the real estate sector who spoke to Abuja Review in confidence noted that the move will curb corruption and will be in the best interest of the majority of the FCT residents, especially the middle and low income earners.

The source said: “It is good for middle and low income earners as it protects them against shylock landlords. Lagos is implementing it and you can see Lagos has the highest internally-generated revenue (IGR).

“On its economic effect; it will improve welfare, consumption and disposable income because majority of the populace earn monthly salary with little upfront payments. So, it is inconceivable how they survive by paying two, three, or one year rent in advance to landlords.”

Another source also warned FCTA to brace up for stiff resistance; especially from the property owners who are mostly the powerful elite should the proposed property tax and rents regulatory agency be introduced. This is in spite the fact that it will boost the economy.